Regulatory Initiative: Draft Regulatory Proposals Relating to the Goods and Services Tax/Harmonized Sales Tax - Forward Regulatory Plan 2018-2020

Title or working title of the regulatory initiative:

Draft Regulatory Proposals Relating to the Goods and Services Tax/Harmonized Sales Tax

Description of the objective:

To ensure the tax system continues to operate as intended, a number of technical amendments are proposed to be made to various Goods and Services Tax/Harmonized Sales Tax regulations under the Excise Tax Act (as well as to the Excise Tax Act itself). These proposed regulatory amendments were developed in response to technical issues identified by various stakeholders, the Canada Revenue Agency and the internal analysis of the Department of Finance.

These proposals include amendments to:

  • Extend the application of the GST/HST rules applicable to selected listed financial institutions to include investment limited partnerships.
  • Revise the GST/HST rules applicable to pension plans to ensure that they apply fairly and effectively to pension plans that use master trusts or master corporations.
  • Improve the clarity and effectiveness of the GST/HST rules applicable to certain pension plans and financial institutions by introducing clarifications and technical improvements to those rules.
  • Extend the application of the GST/HST rules applicable to selected listed financial institutions to include group trusts for registered education savings plans.
  • Introduce housekeeping amendments to improve the accuracy and consistency of the GST/HST regulations.

Indication of business impacts:

The Small Business Lens is not expected to apply.

Public consultation opportunities:

Canadians were consulted on the draft regulatory proposals as part of a consultation announced by news release on September 8, 2017. Interested parties were invited to provide comments on the proposals by October 10, 2017.

The news release for the consultation, along with the draft regulatory proposals and the explanatory notes, is available on the Finance Canada website.

Updated draft regulatory amendments in relation to investment limited partnerships were also included in Budget 2018 documentation, which was tabled in the House of Commons by the Minister of Finance on February 27, 2018. As this updated measure was publicly proposed in Budget 2018, opportunity to comment has been provided to the public.

Departmental contact:

Consultations and Communications Branch
Department of Finance Canada
14th floor
90 Elgin Street
Ottawa, Ontario K1A 0G5

Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: fin.financepublic-financepublique.fin@canada.ca

For more information

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.